Designing_a_Performance_Management_System.ppt

© 2005 Mary I. Voelker

Designing a performance management system

Mary I. Voelker, Ph.D., SPHR

Friday, October 13, 2006

10:30 a.m. – 12:00 noon


Good and Bad

• Think of the best performance appraisal you’ve ever experienced yourself. Describe what made it so great!

• Think of the worst performance appraisal you’ve ever experienced yourself. Describe what made it so bad!


Fact or fiction??????

• Does your performance appraisal …….

– Feel like paperwork to keep HR happy?

– Tell most good employees they are “average”?

– Focus on the past rather than the future?

– Promote fear and defensiveness in employees?


Reciprocal expectations

• Employees want from you– What you expect from them– How they are doing on your expectations

• You (and your organization) want from employees– Work that is aligned with the mission and goals– Maximum performance and growth


Performance management

Definition:

Employee performance management is the process of involving employees in accomplishing your agency’s mission and goals.

Employee performance management includes: planning work and setting goals, monitoring performance, developing capacity, reviewing performance, and rewarding good work.


Designing the performance management system

• What will be the purpose?

• What will be the sequential stages?

• What performance will be measured?

• Who will assess employee performance?

• What will be on the form?

• Will a rating scheme be used?

• What support systems need to be in place?


Job Performance Model

A performer

In a given

situation

Engages in certain behaviors

That produce various results

Grote, D. (1996). The complete guide to performance appraisal. New York: Amacom


Managing performance for …

Accountability

Performance target setting and outcome/results review

AND / OR


Managing performance for …

Employee

Development

Competence assessment and development


Stages of performance management

Plan

Monitor

Develop

ReviewReward


Stage 1 – Individual Performance Planning

Stage 1 – Planning

•Work goals

•Competencies

•Learning

Performance planning at the start of the year and then periodically is the core of the performance management process. The performance plan should be a written document.

Plan


Performance planning

• How is what I do on a daily basis tied to the success of this organization?

• What are my performance goals for the next time period?

• How are my goals aligned with the organizational goals?


Performance Planning

• Performance results – the what– Performance outcomes or standards – from job

description– Performance objectives for the next time period

• Performance behavior – the how– Competencies, performance factors, or

behavior expectations

• Development objectives


Stage 2/3 – Monitor and Develop

Daily performance management!

Monitoring includes measuring performance and giving feedback. Two way communication between the manager and employee throughout the performance period is critical to the performance management process.

Stage 2/3 – Monitor and Develop

•Feedback

•Coach

•Adjust goals

Monitor

Develop


Daily performance management

• Feedback and coaching – informal

• Monitoring and tracking performance against standards and progress toward goals.

• Quarterly performance planning and performance discussions

• Development through coaching, training, challenging or visible assignments, improving work processes


What performance will be measured?

• Behaviors – how the work is done– Performance factors / competencies– Required behaviors – Behaviors supporting desired organizational

culture

• Results – what is achieved – Performance outcomes– Performance compared to job standards– Performance goals and/or objectives


Stage 4 – Performance Review

The formal process of documenting results the employee has achieved and behaviors and /or competencies displayed should occur at least once a year. Stage 4 – Review

•At least annually

•Discuss

•Document

Review


Performance Review

• Summary of performance over a period of time

• Evaluate performance results and behaviors

• Conducted face-to-face with a written record.

• While rating and ranking has both pros and cons, a summary rating of each employee may be useful.


If a rating scheme will be used

• Number of levels: three, four, five, or six• Rating labels

– Numerical: e. g. 1, 2, 3, 4, 5– Behavioral frequency: e. g. always, usually,

frequently, sometimes, rarely– Evaluation: e. g. distinguished, superior,

competent, fair, marginal– Performance against a standard: e. g. exceeds,

meets, does not meet


Who will assess performance?

• Immediate supervisor only

• In addition to the immediate supervisor– Employee (self)

– Peers and coworkers

– Internal and external customers

– Subordinates

Choices include:


Approaches to designing an appraisal form

• Trait based

• Behavior based– Competencies (or performance factors)– Behaviors

• Results based– Performance outcomes– Objectives


What will be on the form?

• Identifying information

• Instructions

• Performance outcomes and/or results achieved (or not achieved) on objectives

• Performance factors / competencies / work behaviors

• Employee signature and approvals


Other information

• Employee comments

• Summary of one to three major achievements

• Strengths / areas for development

• Overall rating

• Plan for development (if not elsewhere)

• Performance plan for next period (if not elsewhere)


Stage 5 – Reward

Good performance should be rewarded. Recognition and non-monetary rewards are an important part of the reward structure. These include job-related rewards such as visible project assignments. Even thank you and recognition for a job well done are rewards!!

Stage 5 – Reward

•Monetary

•Non-monetary

•Recognition

Reward


Rewards, recognition, and compensation

• Recognizing employees for performance– Non-monetary rewards

– Informal and ongoing acknowledgements of good work

• Compensation– Merit increases?

– Pay to market?

– Increases added to base pay or lump sum?

Separate conversation about pay from conversation about performance!!!!!


What support systems need to be in place?

• Senior management support• Management accountability• Communication about the process• Training• Process for new employees• Process for dealing with poor performance• Monitoring and evaluating the process (HR)• Appeals process (HR)


Communication

• Timeframe for the performance management cycle

• Instructions for the supervisor

• Instructions for the employee

• Tie to other systems• Support available


Sample schedule for the performance management cycle

• Complete operating plan• Update quarterly performance plan form with

major agency objectives• Conduct training for supervisors (and employees)• Communication before, during, after• Timeframe for completion of appraisal• Timeframes for quarterly performance plans• Interface with compensation schedule

Designing_a_Performance_Management_System.ppt

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